It was in May 13, 2020 that the MSME sector got the Aatmanirbhar package in which ₹3 lakh crore emergency credit line was the major highlight.Here is a progress update.
Speaking at the Annual Session of the Confederation of Indian Industry, PM Modi explained how Aatmanirbhar Bharat agenda will help India to come back to the growth trajectory.
Nirmala Sitaraman presented the first part of the Budget on expenditures, under three themes:
Economic Development for all &
The second part of the Budget, that dealt with the revenue, sought to radically reduce the general income tax rates and to simplify the Income Tax laws by removing around seventy of the exemptions under the statutes.
Income between Rs 7.5 lakh-10 lakh – 15%
Income between Rs 10-12.5 lakh – 20%
Income between Rs 12.5 -15 lakh – 25%
Income above Rs 15 lakh – 30%
However, the New Simplified tax regime is optional and the individuals can choose to be taxed as per the prior existing tax rules.
Tax on ESOPs issued by start-ups will now be delayed from the exercise date (as it exists today) to a later date, when the employee sells the shares, or when he/she is relieved from employment, or 5 years, whichever is later.
The Power Generator Sector is now proposed to be eligible to claim Concessional Corporate tax rate of 15% along with Manufacturers, without claiming any other exemption or deductions.
Dynamic QR code for invoices is proposed to be introduced.
Start-ups, SME and MSME Reforms:
The Finance Minister says “Entrepreneurship is the strength of India”
Definition of Start-up was earlier limited to companies/ LLPs with turnover upto Rs 25 crores, and now it is proposed to be increased to the limit of Rs 100 crores.